July 22 (Reuters) - Homebuilder Pultegroup on

Tuesday posted second-quarter revenue above Wall Street

estimates, helped by steady home sales resulting from buyer

incentives, sending the company's shares up 1.7% before the

bell.

The sector is grappling with a weakening consumer sentiment,

prompting builders to offer incentives like mortgage rate

buydowns and smaller, more affordable homes to stimulate demand

- which in turn hurt their margins.

Home sale gross margin in the second quarter decreased to

27% from 29.9% last year.

"Over the course of the 2025 spring selling season, we saw

consumers dealing with a range of issues from high interest

rates and challenged affordability to macro concerns about the

strength of the economy," said CEO Ryan Marshall.

Marshall, however, noted positive consumer response to the

pullbacks in interest rates in late June.

The Atlanta-based company's second-quarter revenue fell 4.3%

from a year ago to $4.40 billion, but was still ahead of

analysts' estimate of $4.39 billion, according to data compiled

by LSEG.

Pultegroup ( PHM ) earned $608.5 million, or $3.03 per share, in the

quarter ended June 30, compared with year ago net income of

$809.1 million, or $3.83 per share.